Debt advice sought

andykenuk17

Advice need on this situation if anyone can offer it.

Basically started a business in 2017 and to help get it going I was kind of living on credit cards to make ends meet, plus a wedding to pay for meaning I have 3 cards with around £4500 on each. Also moved house which was more of a necessity than want due to growing family but because of the low wage plus high credit card debt a mortgage wasn't a possibility meaning my father-in-law lending us the capital while taking out a small mortgage on his property. Moving house without a mortgage basically killed my credit score so now I'm kind of stuck with balance transfer 0% rates slowly creeping up. I only have spare cash for minimum payments (on one of the cards this only covers the £200 interest). I can get a loan but the rate is 29% Apr but this is still better than the credit card rate. I do have around £15000 in equity in the property but not sure what our chances of a mortgage will be considering the credit rating. Any advice on this would be appreciated that said we definitely cannot go on without doing anything.

13thlegion

Hi and welcome. You are amongst friendly folks here, many who have been in your situation or worse. Many more knowledgeable than me will be along soon but in the mean time I suggest reading this thread.
https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps-to-take-are-here-please-read-then-ask-questions

You will find that as a rule we are all very much against either consolidation, and definitely against turning unsecured debt, which is a headache, into secured debt, which puts your home and family at risk.

RAS

We really need a full Statement of Affairs to help you. But securing debt that is not yet secured really doesn't help. And any provider will look at your debt level before considering you.

enthusiasticsaver

A full statement of affairs will help but if you have high credit card debt which you cannot afford to service and presumably a loan to your father in law I am not sure why you are considering a mortgage? You may need to consider a debt solution like a DMP if you are unable to get 0% balance transfers or service your existing debt.